Businesses face burdens under new executive order regarding contracts with federal government

Prospective contractors will have to disclose labor law violations from the past three years before they can get a contract.

There is a new executive order from the White House that places a burden on companies that contract with the U.S. government.

Called the “Fair Pay and Safe Workplaces Executive Order,” it will go into effect in 2015. Businesses will have to list any labor and employment issues that may be of interest to the federal government company-wide or involving a subcontractor. If the government deems it serious enough, businesses could lose out on government contracts.

Companies may want to work through their industry associations as the formal regulation takes shape, so they can have input on its final language. As of now, there is no draft regulation.

In addition, some companies may want to find ways to come up with settlements that prevent them from having to report issues so those issues do not appear on a later list.

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Ed Silverstein

Ed Silverstein is a veteran writer and editor for magazines, websites and newspapers. A graduate of Harvard's Kennedy School of Government, he has won several...

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